OREANDA-NEWS. June 29, 2007. SIBUR and SolVin JV, where Solvay owns 75% and BASF, 25%, have signed an agreement to set up RusVinyl LLC, a joint venture for the construction of the PVC production complex with 330 KTA capacity in Nizhny Novgorod region.

SIBUR LLC and SolVin will each hold 50 per cent of the joint venture authorized capital. The Board of Directors of RusVinyl LLC will be formed by 3 representatives from each party.

RusVinyl LLC will buy Solvay’s licenses for state of the art technologies to produce suspension PVC (S-PVC) and emulsion PVC (E-PVC). The joint venture will buy its feedstock, ethylene, for the new production from SIBUR’s Petrochemical plant in Kstovo.

RusVinyl LLC will be in charge of the marketing and sales of vinyls and caustic soda in the CIS territory. Following market growth, the partners intend to further expand the RusVinyl LLC capacity.

Presently, the preparation of the pre-design documentation for the PVC complex construction is in progress. In particular the environment impact assessment of the new production is executed and is expected to include public hearings required by the relevant Russian law involving environmental bodies, scientific community and state organs.

The complex construction is subject to the relevant regulatory approvals and to the realization of appropriate infrastructure works. The anticipated total investment required is EUR 650 million.  Financing of the construction will be performed by the parties according to their stakes in the joint venture.

The parties welcome the idea of Nizhny Novgorod region authorities to develop an industrial park for the PVC processing at Kaprolaktam plant (Dzerzhinsk, Nizhny Novgorod region).

"Solvay has a unique experience in construction and operation of PVC production in Western Europe, South America and South-East Asia. Implementation of high-tech standards, in particular in the sphere of environmental protection, will allow to strengthen our leading positions in Russian market and to create additional value for the stakeholders", - SIBUR LLC President Dmitry Konov said.

"Solvay and SolVin are proud to enter into this major project with Russia’s leading petrochemical company. SIBUR LLC is a particularly dynamic, fast growing company with a clear strategy, which matches Solvay’s own objectives of sustainable and profitable growth", said Jacques van Rijckevorsel, Member of the Executive Committee and General Manager of the  Plastics Sector, Solvay.